1. Field of the Invention
This invention pertains in general to bank accounts and more specifically to managing the transfer of funds between accounts.
2. Description of the Related Art
Many banks to allow their customers to electronically transfer funds between accounts. A person may electronically transfer funds from their account to the account of another person, for example, as a gift or to settle a debt. Transferring funds between accounts at the same bank is typically free and happens quickly because only one bank is involved in the transfer. However, electronically transferring funds between accounts at different banks has some drawbacks.
One way of electronically transferring funds between banks is through a wire transfer. Through a wire transfer, funds are transferred almost instantaneously. A drawback of wire transfers is that they are costly because typically both the sender and the receiver of funds have to pay a large fee. Another way of electronically transferring funds between banks is through a clearing house, such as the Automated Clearing House (ACH). Transfers through a clearing house are usually free or have a small fee associated with them. However, these types of transfers typically take 1-3 days to be completed because several entities are involved and clearing house transfers are handled in batches. Moreover, an ACH transfer may be rejected up to 60 days later.